But this would be insulting to drunks everywhere. The drunk actually understands the economics of the bar better than Schumer understands the difference between monetary and fiscal policy.
The economy right now suffers because the private sector is attempting to save more than it spends, mostly by paying down its enormous debt burden. Because everyone’s income comes from someone else’s spending, reduced overall spending results in income reduction. In our economy, that means higher unemployment.
If the economy is going to grow while households and businesses pay down their debts instead of spending, someone else must take the opposite side of the trade by growing spending more than its income.
With the rest of the world heading toward recession, the only plausible source of this added income is the government. In other words, the government must cut taxes relative to spending (or grow spending relative to taxes) to replace the lost income in the private sector.
What the economy certainly isn’t suffering from right now is a shortage of liquidity or a meager money supply. Which is to say, we’ve reached the limits of what the Fed can do to spur growth. (Although perhaps not the limits of what the Fed can do to fend off a sharp turn downward in the economy.)
To hear a member of the shirker branch of our government blame the Fed for not doing enough would be laughable if we weren’t living with the consequences of the shirking.
Sen. Schumer—and his fellow lawmakers—are the ones who should "get to work."
John on Twitter. (Market and financial news, adventures in New York City, plus whatever is on his mind.) You can email him at email@example.com.
We also have two NetNet Twitter feeds. Follow
CNBCnetnet for the best of the days posts, including breaking news. Follow
NetNetDigest for a feed of every single post each day.
You can also be our friend on Facebook. Or subscribe to John's Facebook page.
We're on Google Plus too! Click here for John's Google+ page.
Questions? Comments? Tips? Email us atNetNet@cnbc.comor send a text message to: 917-740-8477.
Call us at 201-735-4638.